KPIT Technologies announced its Q3 FY2026 results, showcasing a 9.4% YoY growth in rupee terms, though reported dollar growth was 3.0% YoY. The company experienced a 1.5% QoQ CC growth. While profits saw an uptick, EBITDA growth was 6.8% YoY. Strategic investments, including in Al, and acquisitions have influenced current financials.
Financial Performance Overview
KPIT Technologies reported its Q3 FY2026 performance, highlighting key financial metrics:
- Revenue: Experienced a 1.9% QoQ increase in rupee terms and a reported 0.2% growth in dollar terms.
- Growth was primarily driven by the Off-Highway, Powertrain, and Diagnostics sectors.
- Profitability: Achieved an EBITDA growth of 6.8% YoY, although QoQ growth remained relatively flat.
- EBITDA performance reflects the absorption of partial wage hikes implemented during the quarter.
- Cash and DSO: Maintained healthy cash generation. Net cash stood at ₹9.0 Billion at the end of the quarter. DSO (Days Sales Outstanding) was reported at 40 days.
- Wins and Pipeline: Closed engagements worth $202 Million during the quarter. The pipeline is reported as satisfactory.
Performance Highlights
A closer look at the numbers:
- Reported Net Profit: ₹1,334 million compared to ₹1,870 million in Q3 FY25 and ₹1,691 million in Q2 FY26
- Sustainable Operational Profit: ₹1,530 million
- Q3 FY26 Y-o-Y CC growth was flattish, while Q-o-Q CC growth stood at 1.5%
Strategic Direction and Future Outlook
KPIT is focusing on several strategic initiatives to drive future growth:
- Focusing on Al-infused solutions and increasing ownership of large programs.
- Expanding into new mobility segments and adjacencies.
- Continuing investments in key technologies, including AI, cybersecurity, gaming, and in-car experiences, to strengthen capabilities in vehicle engineering and design.
New Engagements
KPIT secured several new engagements in Q3 FY26, with a total contract value of $202 million. These include:
- Strategic engagements with a leading European car manufacturer in middleware, autonomous, connected, and powertrain domains.
- Multiple engagements in connected, autonomous, powertrain, and body electronics domains for a leading American car manufacturer.
- Engagements with a leading Chinese car manufacturer in the connected domain.
Source: BSE
